Webuyanyhouse - how do they dispose

sonypc100

Hi

Our friend has just sold their house to webuyanyhouse, probably losing around 40k.

I was just curious as to how they dispose of the properties they buy?

Rent them out, auction them off, sell them via an estate agent or in house etc?

Or a combination of the above depending on the property?

DaftyDuck

Depends on the property. They have an army of investors who take many as buy to let. Some get pawned off to general customers through an estate agent (a large national, so well-thought of around here, gets many). A few get their problem sorted (decor, smelly carpet) cheaply, get remarketed locally, and sell. Usually quickly. At a profit.

The one thing one can be sure of, they all sell for a profit when they do sell.

Your friend did well to only lose forty thou. Let there be a circle in Dante's Inferno reserved for them. Maybe powersanding their skin, then bathing in hot vinegar, eternally.

eddddy

Are you sure that Webuyanyhouse actually bought/own the house?

Normally, quick house sale companies work like this:

Say a house is worth £120k

- They offer the vendor £80k.
- They find a buyer prepared to pay £100k.

- They do a kind of 'back-to-back' contract, where the buyer pays £100k, the seller gets £80k and the quick sale company gets £20k.

(So they are really just EAs that talk distressed sellers into paying them £20k in commission.

The seller could have just put it on the market at £100k with a conventional EA, and saved lots of commission!)

AdrianC

DaftyDuck wrote: »

Let there be a circle in Dante's Inferno reserved for them. Maybe powersanding their skin, then bathing in hot vinegar, eternally.

<shrug> They solved the OP's friends problem, at a price that was mutually acceptable.

DaftyDuck

AdrianC wrote: »

<shrug> They solved the OP's friends problem, at a price that was mutually acceptable.

Sure, so long as both parties were actually fully aware and understood the process. That's commonly not true. They also often charge an "upfront valuation fee" that deters backing out. Especially since the seller may be desperate.

I've been lucky enough to benefit from the reverse: company relocation that steps in to buy when a local agent fails to sell in a set time. The benefits to me have been immense. These vultures often prey on those who are desperate, stressed, lost. Those vendors lose, massively.

Edddy. Those buyers paying the £100,000 are often investors. The properties are often then rented for a period, before being better marketed, and selling at a tidy profit.

AdrianC

DaftyDuck wrote: »

Sure, so long as both parties were actually fully aware and understood the process. That's commonly not true.

That's one hell of an accusation. I hope you'd be prepared to defend it in court, if need be, because you're stating that there's been criminal fraud.

DaftyDuck

I don't believe for a second there's anything criminal - or fraudulent in what they do. However, like so many aspects of buying and selling houses, the dice are heavily loaded in favour of those who know the process, are experienced, are confident in their buying or selling position, know when to bargain hard, when to hold off for a better price.

Given the balance here - often desperate sellers, ill-advised by trashy estate agents, heavily in debt, stressed, sleep-deprived and just.... well.... desperate is the word. The other party is well-prepared, smooth, used to the process, willing to push hard, not really fussed if they lose that deal, cash-rich and confident.... It's not a level playing-field.

I'm buying right now, second in six months. I'm aware my seller is heading for bankruptcy in a few months or less, unless they sell, I could press the price to the bone and beyond. I could make them cry. If I did, I wouldn't sleep well. I'll stick to the initial price agreed. I have already got a good price, because they need to sell. That's enough. It'll help them, I get a good price, and we all sleep well tonight. I'm pretty confident that, as usual, they and I will remain in amicable contact for a few months or years.

I feel the same with agents taking properties on with gullible vendors, offering a very high sale price on a long, long contract.... then dropping and dropping the price. Oh, and doing so on a fixed initial valuation fee, not on the eventual sale price. Sure, the vendor should understand, read the small print, whatever. They don't, they end up losing heavily.

sonypc100

I believe they complete next week but have no idea on the detail of the deal or what WBAH intentions with the property are hence my question.

They purchased 2 years ago and are losing £45k on their purchase price but around £60k on the current asking price.

Chanes

DaftyDuck wrote: »

I don't believe for a second there's anything criminal - or fraudulent in what they do. However, like so many aspects of buying and selling houses, the dice are heavily loaded in favour of those who know the process, are experienced, are confident in their buying or selling position, know when to bargain hard, when to hold off for a better price.

Given the balance here - often desperate sellers, ill-advised by trashy estate agents, heavily in debt, stressed, sleep-deprived and just.... well.... desperate is the word. The other party is well-prepared, smooth, used to the process, willing to push hard, not really fussed if they lose that deal, cash-rich and confident.... It's not a level playing-field.

I'm buying right now, second in six months. I'm aware my seller is heading for bankruptcy in a few months or less, unless they sell, I could press the price to the bone and beyond. I could make them cry. If I did, I wouldn't sleep well. I'll stick to the initial price agreed. I have already got a good price, because they need to sell. That's enough. It'll help them, I get a good price, and we all sleep well tonight. I'm pretty confident that, as usual, they and I will remain in amicable contact for a few months or years.

I feel the same with agents taking properties on with gullible vendors, offering a very high sale price on a long, long contract.... then dropping and dropping the price. Oh, and doing so on a fixed initial valuation fee, not on the eventual sale price. Sure, the vendor should understand, read the small print, whatever. They don't, they end up losing heavily.

I've given you a thanks for showing some decency in your house purchase too many nasty folks in the property business so it's nice to find a fair one!

eddddy

DaftyDuck wrote: »

They also often charge an "upfront valuation fee" that deters backing out.

They don't tend to charge a valuation fee. They tie the vendor in by getting them to sign a binding Option Agreement - presumably without taking legal advice.

Part of their sales-mantra is that the seller doesn't pay any fees (they just take a big hit on the selling price!).

DaftyDuck

That may be true of WBAH. It's certainly not true of many others, and some charge legal fees, valuation, and a bind-in fee. It can easily outstrip any local agency fee.... And sells at maybe 80% of street value at best.